Justin Abercrombie Attends a Seminar on Just-In-Time Inventory Management

question 39

Multiple Choice

Justin Abercrombie attends a seminar on just-in-time inventory management.Excited about the idea,he returns to his office at Atlanta Auto Supply to start designing such an inventory system.Which of the following steps must Justin take as he institutes this change?

• A) Increase safety stock
• B) Raise the reorder point
• C) Reduce customer service standard
• D) Increase order frequency
• E) Reduce estimates of inventory turnover rate

---

Definitions:

No Money Down

A financing or purchase arrangement in which the buyer is not required to make any upfront payment at the time of purchase.

Weekly Payments

Regular payments made on a weekly basis, often used in terms of loan repayment schedules or employment salaries.

Stated Rate

The annual interest rate declared on a financial instrument, such as a bond, without accounting for compounding within the year.

Rate Of Return

The accrual or diminishment of value in an investment over a specific epoch, visualized as a percentage of the investment’s inaugural cost.